Transparent and honest sports betting on the blockchain: a gimmick or reality?
Betting has always attracted the attention of as numerous customers and authorities. Gradually simple luck of the draw has turned into a sophisticated opaque scheme, which serves as a breeding ground for corruption and organized crime. This situation led to the ban of totes in many countries.
Due to restrictions, the sweepstakes is forced to mimic, sometimes taking unusual shapes. So, a lot of popularity in the US bought a football fantasy League, in which players can form their own rosters with real players, and their win or loss depends on how the members of their virtual team will manifest themselves in the real NFL matches. Although fantasy football is actually a tote, it's totally legit and even has the support of the American football franchises.
The transparency of the tote was always doubtful, but the latest blockchain technology were given the opportunity to make it provably fair. Resistance and verifiability of the blockchain become insurmountable barriers to fraud, which is a big plus for players, organizers and of the whole sector.
The creators of the project Cryptocup, which organizes betting on the football world Cup — 2018 on the blockchain, saying that to do sports betting provably fair and safe it is really. With this aim, the project used a token standard ERC721.
Standard ERC20 well known to anyone who is familiar with the work of the ICO projects: as a rule, the organizers release these tokens, because they are able to function as a normal coin, while ensuring compatibility with bloccano Ethereum. The main difference ERC721 is that tokens of this standard are not interchangeable and indivisible. In other words, you cannot send 0.5 token ERC721 or replace a single token in exactly the same because each one is guaranteed unique.
In Cryptocup this property tokens are used to encode predictions of the players on the championship results. After the official announcement of results the owners of the tokens with the winning forecasts are rewarded. Until then, they can buy someone else's tokens, increasing your chances of winning.
Thus, this model preserves the mechanism of the tote, eliminating from it the opacity and the majority of the related risks. The sweepstakes industry has experienced UPS and downs, but the blockchain technology in the future is able to bring her out of the shadows and make what it was at the dawn of its existence: a simple friendly dispute.